Related Literature of Sales and Inventory System

The Home Depot, Inc. (The Company) is the largest home improvement retailer in the world and the second largest retailer in the United States. The Company has been publicly traded since 1981 on the New York Stock Exchange under the ticker symbol "HD" and is included in the Dow Jones Industrial Average and the Standard & Poor's 500 Index.

I had every intention of utilizing a JIT approach. In fact, that was the reason I put off increasing my capacity for so long. I figured it was likely that I would continue to enhance my products and change my strategies in the beginning. I also thought that my products would not be highly demanded in the beginning. It worked well for me in the first two quarters. It wasn’t until the second half

Inventory is the total quantity of materials or goods contained in a factory or store at any given time. The owners of store need to be familiar with or know the exact figure of items on their storage areas and shelves in order to place losses or orders. Factory managers should know how the number of units of their goods that are available for client orders. The word inventory can be used for both the overall sum of goods and the work of summing them. In the case of racket science retailing, the company usually takes a record of its supplies on a regular manner in order to keep away from running out of common items. To some extent, the company takes inventory to make sure that the number of products ordered matches the real number of products or items counted physically. Normally, in cost accounting, averages or shortages after an inventory indicates a problem with theft (mostly referred to as 'shrinkage' in retails) or inaccurate accounting practices. Rocket science retailing also takes a record of stock after every trading

As argued by Lubben (1988), JIT allows businesses to have better management since this ensures that there is no loss as there is sufficient number of clients requiring the equipment. This reduces her to deal with huge deliveries when the clients’ numbers are not increasing. (Lubben, 1988, p.4) also suggested the idea of JIT that “... major elements of manufacturing – capital, equipment and labour are made available only in the amount required and at the time required to do the job.” So it is a good practice by utilising JIT approach as it reduces wastes and ensure the correct amount of equipment is available (Lubben,

JIT is a manufacturing management method developed in Japan during the 70's to meet customer demands. The individual most credited with the development of JIT is Taiichi Ohno, the vice president of Toyota

Supply Chain Management plays a vital role in our hospitals today. With the growing cost of healthcare and new technologies, it is vital for hospitals to run as efficiently as possible and without jeopardizing care. To the materials manager and to the financial minds of a hospital the area of supply chain is a tedius task at best, the kind of planning, strategizing and measuring that seldom goes recognized and rewarded. The work involved with inventory control fits tightly within that description.

Through the end of the 1980's, most software packages for distributors placed an emphasis on sales and accounting related modules. In the early 1990's, many distributors recognized that they needed help controlling and managing their largest asset, inventory. In response to this need, several computer software companies developed comprehensive inventory management modules and systems. These new packages include many new features, designed to help distributors effectively manage warehouse stock. But after implementing new software, many distributors don't feel that they have gained control of their inventory. These wholesalers continue to face many of the same challenges they experienced with their

Reduction in Warehouse Costs: It can be costly to keep excess inventory on hand. By moving to JIT we may be able to reduce the number of warehouses we currently have as well as eliminate excess storage.

But let’s take a look closely at what is inventory in certain industries. Inventory in the agricultural industry is the growing crops, developing animals held for sale, harvested crops, livestock held for sale, and secondary products like calves from dairy herds and wool from sheep. In the airline industry, the inventory is used for own consumption which sets it apart from the original definition of inventory. Their inventory curtails mainly of spare parts and materials and supplies to be used in the operation of the airline. For contractors that are into construction, inventory is the small tools that are used in the construction activities. For software, the inventory is the tools and technological products associated with the production of computer software. These are a few scenarios of what is inventory in some industries. Let’s see now some issues associated with inventory, the historical aspects pertaining to U.S. GAAP and IFRS, revenue recognition and measurement rules, presentation and disclosures, and any upcoming developments that affect inventory.

The principal role of inventory management systems is to ensure that stores are adequately stocked. Companies use various methods to track and report inventory. Retail companies are perhaps the best entities to examine when attempting to understand inventory management systems. The type of inventory a company has determines the method they use. Retail companies use the retail inventory method as a base system. Last-in-First-Out (LIFO) and First-in-First-Out (FIFO) are the two systems that appear to be used more

Inventory is the money the system invests in purchasing things the system intends to sell. Traditionally, inventory is considered an asset. However, Goldratt views inventory differently. The question is how does inventory add value to the company? It only does so when we sell products (increase throughput).

“Inventory is one of the drivers of supply chain. Inventory is the stock of goods held for doing business.”

Today, numerous companies are willing to keep or own their particular inventory in order to fulfil endless satisfaction of consumers. However, these stocks may be costly in terms of prices and their performance. For example, these stocks may be stolen, lost, damaged, out-dated, deteriorate and so on. They may also require huge number of capital to keep them in respective stores. Moreover, it may not be a wise way as changing demand in economy. After all, this action may occur financial loss to the business.

JIT able reduce the storage space to store goods and allow organization to reduce the risk to invest in unnecessary stock. Besides, it is suitable for those smaller organization that have limited funds as they can only ordering stock when it is needed (Barlow, 2016). However, there are some notable limitation of JIT system in inventory management.

In a business accounting context, the word inventory is commonly used in American English to describe the goods and materials that a business holds for the ultimate purpose of resale. In the rest of the English speaking world stock is more commonly used, although the word inventory is recognised as a synonym. In British English, the word inventory is more commonly thought of as a list compiled for some formal purpose, such as the details of an estate going to probate, or the contents of a house let furnished.[1] In American English, the word stock is commonly used to describe the capital invested in a business, while in British English, the word share is more widely used in the same context. In both British and American English, stock is